�!>� Clipping is a handy way to collect important slides you want to go back to later. � Medium of Exchange The primary function of money is that it acts as a medium of exchange. Money has no power to satisfy human wants, but it commands power to purchase those things, which have utility to satisfy human wants. � <> <> So money serves all of these functions— it is a medium of exchange, store of value, unit of account, and standard of deferred payment. Structure of Financial Markets Debt and Equity Markets Primary and Secondary Markets Exchanges and Over-the-Counter Markets Money and Capital Markets 3. endstream x�3R��2�35W(�*T0P�R0T(�Y@��� Money also helps in the distribution of national income. <> �\ } ' <> .� Students are given the descriptions of three major functions of money (Medium of exchange, Store of value, Unit of account). � � Functions Of Money: Medium of Exchange: Goods and services can be traded with money. of money to reduce these costs. 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Store of Value: It can be saved. � stream /Resources 20 0 R /Filter /FlateDecode /Length 67 >> endobj Write this list on the chalkboard or on chart paper. can of diced tomatoes for $1.75 or the 28 oz. endobj This means that people can buy or sell goods and services with the help of money. functionsss stream Last year, you sold your game system to your friend Jimmy for $125 in cash. goods and services are exchanged for money. � “Money is a matter of functions four - a medium, a measure, a standard, a store.” Thus, money is a medium of exchange, a measure of value, a store of value, and a standard of deferred payments. 2019-02-21T10:28-05:00 .� Money is a set of assets that are generally used and accepted as a medium of exchange for goods and services in an economy. endstream endobj At the grocery store last week, you had to decide whether to buy the 14.5 oz. �!>� �z@� �0& The value of all commodities and services can be expressed in monetary terms. <> <> �����c����� k�� <> <> This worksheet is good for upper-intermediate or advanced students. � Functions of Money In this story, the dollar that Matt found was used for many things. <> � The following are the utmost important functions of money. /Resources 18 0 R /Filter /FlateDecode /Length 111 >> Everything that fulfills these three functions can be considered money. endstream 2019-02-21T10:28-05:00 You just clipped your first slide! x���aV; �a{7��DX��q%�p%�J0�9���2L�/-���N���@c&����/@����N�&B!���Da"�0B�!L�&B!���Da"�0B�!L�&B!���Da"�0B�!L�&B!���Da��[�m6�v������?�gVgOu�Y��kV�W���Da"�0B�!L������O`�}��/�b6e�1�X�(���Da"�0B�!l�)��o��v�-��x��g�sޢŗ �j9,#!���Da"�0B�!L�f��#'��Ik���_-�e$�0B�!L�&B!����� t[ Financial Instruments Money Market Instruments Capital Market Instruments 4. Thus, it allows people to save in order to make purchases at a later date. <> 6 0 obj Commercial finance is made available to the traders through bills of … endobj �\ |�# �\ |�& endobj H��W�n���ȯ�Gj`��M6/ه����]�ؑ���`h�mqM� <> ��ebbbbbN���������C`Y�X�X�X�X�X��!��@�@�@�@�@�@���XV V V V V V�t,++++++p:������8� Money performs many primary and secondary functions. A Medium of Exchange: The only alter­native to using money is to go back to the barter system. �����c����� k�� %PDF-1.5 %���� ��ebbbbbN���������C`Y�X�X�X�X�X��!��@�@�@�@�@���XV V V V V V V�� Function # 1. x�3R��2�35W(�*T0P�R0T(�Y@��� �����c����� k�� These functions help us transit in goods and services with ease. ��S�VXG�P����=���E x�3R��2�35W(�*T0P�R0T(�Y@��� � /Resources 20 0 R /Filter /FlateDecode /Length 67 >> 4. <> They are given below. function of money exhibited here? <> 1. They heat the cabin and cook their food with wood; a nearby stream and well furnish water. �z@� �0& The demand for any good or service is usually pictured in economics as a function of its price, holding income and other factors constant. endobj /XObject <> x�3R��2�35W(�*T0P�R0T(�Y@��� � Money and its Functions. ̹�5b��Sh���ete��l0F��I�0`{�n����鏆��h�cW�Z��q|��n��P����Ty�P!d�%"��"����.��^$�q7T1B-��"�Ϟ;�!�x":;y��M���oh��׬����kdT��Gk~ړ�?�B�G�ڊ��#`_z ���t+l���p7$��=�j06ds�.P��G@t>���]8��[w��u���ڐ�#�2��ݛz�?��[7,��;|���0za���F���ɀ�kx�t�4Zȡ��I�R���n������������pwM7�}��a:�e�Ɋ*�Q��BX��(�4��*�%�����X�q�[t`���u��#5N�š/ �V������� X�]z2��S�}J��Z�)/[S���覤�Z�جysC�fKE�h��e�P�e�un62�-���0�|uSz1���պ���b��ǣ �U�~��7k�L�K�1��x[�ߖ^�:�6 ��5P�SU-�$Dcj�֤m�. (da?ŀ)eO�PI�qt���tN��������������Z�����?�˴|��'�v�S�'A�H�M�l��L��>z�?���[�@��X3M�G%;փ�r�c�D�ZθH�ΎÒRzQg�bJ/�������{7�7�7n< � �������C2� ADVERTISEMENTS: The following points highlight the top six functions of money. 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Money is basically any commodity that is generally accepted in the exchange of goods and services, and when any of the above types of inflation occurs, money begins to lose some of its functions, and I shall be discussing how this happens in my following essay. endstream � x��Yێ�6}_`�A���M�� @�� E7M��S�E�z��Vj�ү�)ʢ,z�-�x%q8s8. endobj stream x�5�K /Resources 20 0 R /Filter /FlateDecode /Length 67 >> x�3R��2�35W(�*T0P�R0T(�Y@��� � /Resources 20 0 R /Filter /FlateDecode /Length 67 >> Microsoft® Word 2010 Money is received by the seller who sells the good. endstream <> � Functions of Money. endobj x�3R��2�35W(�*T0P�R0T(�Y@��� Products are exchanged for money that money can be then used to buy other product. ��M�o���� ���Da"�0B�!L�6�E��j�MZi�ϫ�5b�>)B�!L�&B!��(�m��mG�}�j�=Wq�(���Da"�0B�!����^a� ���`�� ���&B!���Da"��Q.���Я�6��V�o���81B�!L�&B!���F_E�b��F��-��O�4ZE�sߎ�6�0B�!L�&B!���Da�osD���j4%X�X�&��?W��m�D.5gn$�0B�!L�&B!��2�_0��}�F'��{�ןU�������f ���Ha"�0B�!L�&B�jkcnro����Y?��mqI���a$�0B�!L�&B!�兞�+�7z\|?�_�F�8=ֻ��&B!���Da"��Q�(�d�}V|�Fo�� 3. x��ڱ � A��{���4S��\���������I� Measure of value: it simplifies the exchange process because it’s a means of indicating how much something costs. However, as a system of ex­change the barter system would be highly impracticable today. stream .� <> Money as a standard of deferred payments Money is useful in the purchasing goods on credit as it is easy to borrow-and lend 4. No matter whether money is gold or paper or beads or knives, in any economy it has three functions. It serves as a medium of exchange. 1] Money … 16 0 obj � 4 0 obj � endstream Functions of Money. � “Money can be defined as anything that is generally acceptable as a medium of exchange and at the … endstream 4. � endstream Overview & Lesson Objectives endobj Right from the beginning, money has been performing an important function as medium of exchange in the society. stream 3. <> <> Name some ways the dollar was used. It shows how money facilitates transactions by comparing a money system to a barter system. 14 0 obj stream x�3R��2�35W(�*T0P�R0T(�Y@��� � � � 15 0 obj stream The functions of money can be known from its definition. � Money facilitates transactions of goods and service as a medium of exchange. endobj � 3. �z@� �0&�2�Գ��ɹ 22 0 obj �!>� >> Medium of exchange: Money can be used for buying and selling goods and services. Definition of Money: “Anything which is widely accepted in payment of goods or in the discharge of other kind of payment obligations”. To begin, let's think about a frontier household. 13 0 obj � On the payment of money, purchase of goods and services can be made i.e. 8 0 obj x�3R��2�35W(�*T0P�R0T(�Y@��� endobj It is a standard for measuring values. 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